In Brief
A contractor (Sharma & Associates) appealed against a High Court decision setting aside an arbitrator's award for additional payment under a sub-contract for construction work. Sharma claimed it was entitled to revised rates received by its immediate contractor (Progressive) from the principal contractor (HSCL), arguing the contracts were "back-to-back." The Supreme Court held that terms of a higher-tier contract cannot be incorporated into a lower-tier contract without express agreement. The arbitrator erred by relying on provisions that did not apply to the dispute between these parties. The Court dismissed the appeal, finding Sharma bound by its own contract's escalation clause and unable to claim benefits negotiated by Progressive at a higher level.
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